Growth in cement sales in 2013 reached 5.6% or slowed down twice compared to 2012 at 14.5%. Data of the Indonesian Cement Association (ASI) stated that cement sales in January-December 2013 reached 58 million tons. When coupled with import supply, sales during that period reached 59.5 million tons. The increase in sales in 2013 is only about 3 million tons compared to 2012 reached 7 million tons compared to 2011. “Last year, sales of cement is less satisfactory,” said Chairman of the Indonesian Cement Association (ASI), Santoso Widodo, in Jakarta (Friday, January 10).
Widodo believed that low sales of cement outside Java makes the overall cement sales slowed. For example, sales in Sumatra, in 2012 sales growth reached 8.9%, while in 2013 only 1.4%. And, growth of sales in Kalimantan in 2012 reached 21%, and in 2013 only 7.6%. Likewise, in Sulawesi sales grew 16.6% in 2012, while in 2013 only 3.9%. Sales growth in Nusa Tenggara and Bali in 2012 reached 14%, whereas in 2013 only 2.9%. Decline in sales also occurred in eastern Indonesia. Sales growth in 2012 reached 50%, whereas in 2013 there is relatively no growth.
Consumption or national cement sales is projected o grow about 5%-6% this year, but business operators believed that cement exports can increase dramatically this year. He said that this year there will be additional production due to construction of new two cement plants (integrated/complex/complete), namely PT Holcim Indonesia with a capacity of 1.7 million tons per year, and a Taiwanese cement company with a capacity of 1.5 million tons per year. Besides the addition of two new factories, at the end of this year there will also be three cement producers who will increase their capacity.
Widodo is optimistic that exports this year could reach 2 million tons. The target is much higher than export in 2014, it is expected to reach 800,000 tons per year. In 2012, exports only reached 215 677 tons per year. In fact, export target in 2014 was still higher than the realization of export in 2011 at 1.25 million tons per year.
In terms of sales, Widodo was only able to set growth target at 5%-6%. According to him, cement consumption in the country is very large, or nearly 60 million tons per year and three times of the consumption in Malaysia at 20 million tons per year. The majority of the domestic cement consumption is used for construction of housing and property. While infrastructure construction is only about 25% of cement demand.
Widodo also stated that the government issued rules concerning restrictions on imports of cement that has not been published, and even tend to be concealed. With the enforcement of this rule, it is estimated that more domestic cement manufacturers will perform expansion. Widodo claimed to have been looking forward to this rule for a long time. Because cement import is estimated to continue to increase each year, which is enough to make domestic manufacturers to cut production because their product will not be absorbed.
The rule on restrictions on cement import is set forth in Regulation of the Minister of Trade No.40/2013 on Import of Cement Clinker and Cement. The rule contains the main points of import regulations, both on cement and cement clinke, importer must have a cement importer producer permit (IP-Cement). As for the import of cement, importers must have a license of registered importer of cement (IT-Cement) to obtain import approval. “To obtain the permit, the requirements are strict,” he said. (E)
Business News - January 15, 2014